A feature that gives the issuer the opportunity to repurchase bonds at a stated price prior to maturity is called

Question

Quizplus · Accepted Answer

A call feature allows the issuer to repurchase the bonds at a stated price prior to maturity. A conversion feature allows the bondholder to convert the bonds into a specified number of shares of stock. A stock purchase warrant gives the holder the right to purchase stock at a specified price within a certain timeframe. Therefore, the correct answer is B.

A Feature That Gives the Issuer the Opportunity to Repurchase